Reduced supply and increased demand are pushing up local house prices, according to the latest RICS and Ulster Bank Residential Market Survey.

February was the 21st month in a row that average Northern Ireland house prices rose, according to the survey, and surveyors expect the trend to continue.

Transaction volumes have also been edging up, and surveyors expect further increases in the months ahead.

RICS Northern Ireland spokesman Samuel Dickey said: “With new buyer enquiries continuing to rise at a faster rate than new vendor instructions, this is creating upward pressure on prices. Indeed, the gap between demand and supply appears to be widening as more potential buyers have been coming into the market after Christmas.

"However, this will likely rebalance at least to some extent as we move into the spring, when more properties tend to come onto the market. This should also lead to an increase in transactions.

“It should be remembered though that there is significant variation in the market, notably between Greater Belfast and more rural areas.